Competing on price-the role of retail price advertisements in shaping store-price image

  • Cox A
  • Cox D
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Consumers often patronize stores based on perceptions of those stores' overall price levels; yet little is known about how such perceptions are formed. This paper presents the results of an experiment in which grocery shoppers are presented with alternative versions of a supermarket's advertising circular, and asked to judge that store's overall price level. The results suggest that a supermarket may create a lower price image if its advertised prices are presented as reductions from previous prices. The results also indicate that the brand and product category of merchandise featured in retail advertisements interact to influence a store's price image. ABSTRACT FROM AUTHOR

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  • Ad Cox

  • D Cox

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